IGI Logo

Below the Weekly market outlook 06th November 2026 from Vinod Nair, Head of Research at Geojit Investments Limited

"Dalal Street lit up ahead of Diwali. Indian equities logged one of their best weekly gains with the Nifty reclaiming 25,000 on a seven-session winning streak. Strong Q2 earnings, healthy October auto sales and firm GST collections set the stage, but Washington supplied the spark. The U.S. midterm election verdict revived hopes of de-escalation in the Iran conflict and a softer line on tariffs. Crude slumped below $100 a barrel, U.S. Treasury yields and the dollar eased, and the rupee firmed. Foreign investors, rotating out of crowded AI trades, returned as heavy buyers after months of selling. Talk of tax relief in the upcoming Union Budget added fuel. The market even shrugged off an AI-led rout on Wall Street as investors treated India as a relative safe harbour.

Market participation remained largely broad-based through the week, with strong buying interest across key indices. Private banks, which had been under pressure in recent weeks amid margin concerns, led the rally, supported by renewed foreign investor interest. Autos and consumption-oriented sectors gained on festive demand, while IT and PSU banks remained relatively subdued. Domestic institutions booked profits, but robust foreign inflows comfortably absorbed the selling pressure.

The new Samvat opens with a holiday-shortened week, beginning with the Muhurat session. Today's U.S. jobs data and next week's U.S. CPI will shape Fed expectations, with officials still signalling further hikes. At home, the CPI print and the remaining Q2 results are the key triggers. The rally's durability hinges on breadth holding up and on de-escalation hopes turning into concrete progress in West Asia. After such a sharp run, intermittent profit booking cannot be ruled out, but the near-term bias stays constructive. Investors should stay selective, favouring large-caps with earnings visibility and buy on dips strategy."

Above views are of the author and not of the website kindly read disclaimer